The won-dollar exchange rate against the U.S. dollar was 1,416.4 won at 9 a.m. on the 14th. That was down 3 won (0.21%) from the previous transaction day's weekly closing price.
There is an outlook that the exchange rate could fall that day. That is because the U.S. Federal Reserve (Fed) is seen as less likely to raise its benchmark interest rate. According to the Chicago Mercantile Exchange (CME) on the 13th local time, the probability of holding the benchmark rate steady in September rose to 67.6% from 59.4% the previous day. The July producer price index was flat at 0% from the prior month, below the market forecast of 0.2%. When rates are kept on hold, the dollar tends to weaken and the exchange rate tends to decline.
International oil prices are also on a decline. Brent crude, the international benchmark, fell 2.15% to $87.07 per barrel from the previous transaction day. West Texas Intermediate (WTI) dropped 2.43% to $81.25 per barrel.
However, some say the decline in the exchange rate may not be large. When the rate falls, importers step up buying to secure dollars at cheaper prices. Min Kyung-won of Woori Bank said, "In August, the pattern of the exchange rate falling in the morning and rebounding on bargain hunting has been solidifying."